Lohilo Foods (LOHILO) Q3 2024 earnings summary

Executive summary

• Net sales grew by 4.0% to 49,093 TSEK in Q3 2024 and by 9.8% to 157,784 TSEK for Jan–Sep 2024, driven by strong performance in own brands and Swedish market.

• EBIT turned positive at 862 TSEK in Q3 (from -1,460 TSEK) and 1,826 TSEK for Jan–Sep (from -8,808 TSEK), reflecting cost reductions and restructuring.

• Net result improved but remained negative: -211 TSEK in Q3 (from -2,335 TSEK) and -1,115 TSEK for Jan–Sep (from -11,545 TSEK).

• Export sales declined 11.2% in Q3 due to lower volumes to Finland, but are up 0.4% YTD; Swedish sales rose 11% in Q3.

• No significant events reported during or after the quarter.

Financial highlights

• Q3 gross margin decreased to 33.6% (from 34.0%), impacted by currency effects and higher raw material costs.

• EBITDA for Q3 was 2,187 TSEK (139 TSEK), and for Jan–Sep 5,875 TSEK (-3,943 TSEK).

• Cash flow from operations was -340 TSEK in Q3 and -34 TSEK for Jan–Sep, with total cash flow for Jan–Sep at -2,756 TSEK.

• Cash and equivalents including credit lines were 7,525 TSEK at period end (12,233 TSEK prior year).

• Equity at period end was 14,773 TSEK (26,774 TSEK prior year); equity ratio 20.3% (30.3%).

Outlook and guidance

• Full-year 2024 guidance updated: net sales expected to rise ~10% (previously at least 10%), EBITDA margin to exceed 3% (previously >5%), due to SEK depreciation and cost pressures.

• Price adjustments and efficiency measures planned for 2025 to address margin pressures.

• Export focus remains on existing markets with expected increased listings in Finland and Norway in early 2025.